The Standard Variable Overhead Cost Rate for Harris Manufacturing Is

question 39

Multiple Choice

The standard variable overhead cost rate for Harris Manufacturing is $25.00 per unit. Budgeted fixed overhead cost is $48,100. Harris Manufacturing budgeted 3700 units for the current period and actually produced 3900 finished units. What is the fixed overhead volume variance? Assume the allocation base for fixed overhead costs is the number of units expected to be produced.

• A)$5000 favorable
• B)$2600 favorable
• C)$5000 unfavorable
• D)$2600 unfavorable

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